The Variance of a Discrete Distribution Increases If We Add

question 62

True/False

The variance of a discrete distribution increases if we add a positive constant to each one of its value.

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Definitions:

Merger Premium

The excess amount that an acquiring company pays over the market value of the shares of the company it is buying.

Cash Acquisition

The purchase of a target company using cash as the form of payment rather than stocks or other methods of payment.

After-Merger Earnings

The net income of a company following the completion of a merger, reflecting the financial performance after the consolidation of assets and operations.

Shares Outstanding

Shares outstanding refer to the total number of shares of stock that are currently owned by investors, including both public and institutional ownership.